SASKATOON, SASKATCHEWAN–(Marketwired – April 20, 2015) – WESTCORE ENERGY LTD. (“Westcore” or the “Company”) (TSX VENTURE:WTR) is pleased to announce that it has formalized its working interest in the Riverside heavy oil field of Allstar Energy Limited (“Allstar”), located 16 km north of the town of Leader in Western Saskatchewan. In accordance with the Farm-in Agreement entered into between Westcore and Allstar in fiscal 2012, as amended in June 2014 (collectively, the “Agreement”), Westcore now has a formalized 5.50% interest in 6 wells at Riverside (see Westcore’s news releases dated July 25, 2012 and June 12, 2014 for more details and information on the Agreement). To date, 3 of these 6 wells have been completed and equipped for production.
The Company earned this interest by completing a 20 square km 3D seismic program in 2012. In fiscal 2014, the Company exercised its right of first refusal, as was provided for in the Agreement, and funded a $300,000 of a secondary drilling program which resulted in a 22% working interest in a salt-water disposal well at Riverside.
The interest percentages are calculated as a function of capital provided as a percentage of total capital used in drilling the six production wells and the disposal well. The allocation of working interest was made effective as of December 31, 2014.
It is anticipated that the addition of the water disposal facility will enhance the economics of producing wells, along with the potential to generate a secondary revenue stream from the disposal of third party water. It remains the intention of the Company to continue with its investments in oil and gas, with a focus on the Riverside field.
All production in the Riverside field is currently shut-in for spring breakup. The decision to re-initiate production post break-up will rely to a large extent on the current market price for heavy oil at the time.
Allstar is a wholly-owned subsidiary of 49 North Resources Inc. (“49 North”). As 49 North is also an Insider of Westcore by virtue of its shareholdings (roughly 23% of outstanding Westcore shares), Allstar and Westcore are considered to be “Non-Arm’s Length Parties” under the rules and policies of the TSX Venture Exchange.
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Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, the potential impact of the water disposal well on the economics of producing wells and the Company’s intention to focus on Riverside. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
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Westcore Energy Ltd.
Vice President and Chief Operating Officer